Visa V is taking a significant step toward modernizing cross-border money movement. In a move aimed at enhancing the efficiency of global transactions, Visa is expanding its stablecoin settlement capabilities to the high-performing Solana blockchain. This expansion includes collaboration with prominent merchant acquirers Worldpay and Nuvei, marking a pivotal development in the world of digital payments.
A Leap in Cross-Border Settlement
Visa has been actively testing the use of stablecoins, such as USDC, within its treasury operations. A notable milestone was reached through a pilot program with Crypto.com in 2021, making Visa one of the first major payment networks to explore stablecoin settlements on the issuance side. This endeavor streamlined cross-border transactions for Crypto.com Visa cardholders, eliminating the need for lengthy currency conversions and expensive wire transfers.
Facilitating Merchant Settlements
Visa's latest expansion extends beyond issuers to acquirers, providing a boost to merchant settlements. Merchant acquirers like Worldpay and Nuvei, serving a diverse range of global businesses, can now leverage Visa's stablecoin capabilities to expedite settlement times. This innovation caters to an increasing number of merchants involved in blockchain and cryptocurrency sectors, aligning with their preference for stablecoins over traditional fiat currencies for card payments.
Supporting Solana for Speed and Efficiency
To meet the growing demand for faster and more cost-effective stablecoin transactions, Visa has chosen to integrate support for the Solana blockchain. Solana offers high-performance capabilities, with rapid block times and impressive transaction processing capacity. This strategic move positions Visa as one of the first major payment companies to utilize Solana for live settlement payments between clients, significantly enhancing transaction speed and reducing costs.
A Glimpse into the Future
Visa's initiatives with Worldpay and Nuvei underscore its commitment to innovation in the digital payments landscape. By embracing the potential of stablecoins and blockchain technologies, Visa is paving the way for a more efficient and versatile financial ecosystem. As the world transitions toward digital currencies, Visa's efforts to enhance cross-border money movement represent a significant stride in revolutionizing global finance.
Zacks Rank and Price Performance
Visa carries a Zacks Rank #3 (Hold).
Shares of Visa have risen 18.1% year to date compared with the industry’s 14.8% jump.
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Stocks to Consider
Some top-ranked stocks from the same space are FirstCash FCFS, PagSeguro Digital PAGS and Paysafe Limited PSFE.
FirstCash’s earnings surpassed the Zacks Consensus Estimate in the last four quarters, with the average surprise being 7.31%. The Zacks Consensus Estimate for FCFS’s 2023 and 2024 earnings per share indicates a year-over-year increase of 6.4% and 21.8%, respectively. Year to date, FCFS shares have gained 3.9%. It carries a Zacks Rank #2 (Buy).
PagSeguro delivered an average four-quarter earnings surprise of 9.30%. The Zacks Consensus Estimate for 2023 and 2024 earnings per share indicates a year-over-year increase of 13% and 11.8 %, respectively. Year to date, PAGS shares have gained 2.8%. It carries a Zacks Rank #2.
Paysafe delivered an average four-quarter earnings surprise of 153.96%. The Zacks Consensus Estimate for PSFE’s 2023 and 2024 earnings indicates 5.8% and 0.8% year-over-year, increase respectively. Year to date, PSFE shares have lost 4.1%. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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